Small point. A week before the general bank guarantee, the limit for the ordinary deposit guarantee was raised from 20k to 100k per depositor. This was applied to 100% of each individual deposit in the banks covered by the scheme.
Good point SM - but same principle
Charge the tax on the date the ordinary deposit guarantee was increased.
Same principle - those who benefited, should pay.
Err, shouldn't you apply these haircuts to the bondholders of these institutes first before you apply them to the depositors? That's what would have happened if those banks had failed.
Agree. Charge the bondholders as well.
In practice, I suspect it would have to be limited to Irish resident depositors and bondholders
jpd and others said
Yup, guaranteed bank run for all amounts over the €20k. This is certainly what I would do if I had any money left in the country.
This is a retrospective charge on the amounts on deposit in September 2008. It would be charged whether you have money on deposit now or not. There would be no advantage in taking your money out now other than to evade your tax liability.